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State of the Economy hearing this week

WASHINGTON (2/25/08)—The House Financial Services Committee will hold a two-day Humphrey-Hawkins Act hearing on monetary policy and the state of the U.S. economy. In announcing the Feb. 26-27 hearings, a committee release noted that on Feb. 20 the Federal Reserve joined other forecasters in predicting slower economic growth, higher unemployment, and an elevated rate of inflation for the U.S. economy. “In light of these forecasts, the hearings will focus on the appropriateness of monetary policy over the past six months and consider what further actions might be taken,” the release said. Fed Chairman Ben Bernanke will be the sole witness at the hearing’s second-day session as he presents his semi-annual report to Congress. A panel of economists will address the issues during the first day of hearings. The 1978 Humphrey-Hawkins, which required the Federal Open Market Committee to report on the economy and monetary policy twice a year, expired in mid-2000, yet the traditional semi-annual forums are still generally referred to by that name.